which of the following statements is true reported income under absorption costing him is not affected by production level changes

e Acctg 48-28362- l lli Test #2 Acctg 48 (C Assignment Results Assignment Resurs I Gurban Company rec-G sea Way Cool produces two dfferent models of air conditioners. The company produces the mechanical systems in their components department. The mechanical systems are combined with the housing assembly in its finishing dopartment. The activities, costs, and drivers associated with these two manufacturing processes and the production support process follow S 476,150 Number of batches 890 356,816 363,000 Machine hours mber of setups 200 $1,195,966 Finishing Welding 5,600 288,750 Number of inspections 825 160 S 326,480 Welding hours 36,000 Rework orders $ 651,230 S 210,980 Purchase orders 31,100 Number of units 42.220 Number of units 548 3,900 3,900 Support Purchasing Providing space Providing utities 284,300 Additional production information conoeming its two product lines follows Model 145 Model 212 1,300 2,400 445 485 2.350 2,600 3,200 445 340 5,340 Units produced Welding hours Number of inspections Machine hours Rework orders Purchase orders 90 365 70 183 .o F2 15 8